The net income reported on the income statement for the current year was $144,400. Depreciation...
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Accounting
The net income reported on the income statement for the current year was $144,400. Depreciation recorded on store equipment for the year amounted to $23,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
Line Item Description
End of Year
Beginning of Year
Cash
$58,190
$52,950
Accounts receivable (net)
41,720
39,130
Inventories
56,970
59,570
Prepaid expenses
6,400
5,030
Accounts payable (merchandise creditors)
54,520
50,090
Wages payable
29,790
32,720
a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when
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